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SC to hear I-T dept plea against quashing of black money case involving Chidambaram's family

Press Trust of India  |  New Delhi 

The Tuesday agreed to hear the Income Tax department's appeal challenging the Madras order which quashed criminal prosecution against senior P Chidambaram's family members under the

The top court, however, refused to stay the order of the

A bench of and Justice issued notice to Chidambaram's wife and their son Karti, who is contesting election from Sivaganga constituency in

The bench also sought reply from Karti's wife and others in the case.

The had quashed criminal prosecution initiated by the I-T department under the Black Money Act against the three.

General Tushar Mehta, appearing for the I-T department, sought stay of the high court order of November 2, 2018 on various grounds including that it can be used by other accused to avoid criminal prosecution in cases related to black money.

To this, the bench said that granting stay at this stage without hearing the other side would amount to allowing the appeal of the I-T department.

The general further said that if the stay is not granted then other high courts may quash the criminal prosecution against similarly placed accused under the and urged that the November order of the high court should not be treated as a precedent.

The bench said that it will not be treated as a precedent as the high court would be cognizant of the fact that the apex court is seized of the matter and is scrutinizing the order.

The issue relates to alleged non-disclosure of overseas assets and held by the trio.

According to the I-T Department, the three had not disclosed a property they jointly owned in in the UK worth Rs 5.37 crore in their returns which amounted to an offence under the Black Money (Undisclosed Foreign Income and Assets) Act and Imposition of Tax Act.

It also alleged that did not disclose an he holds with in the UK and investments he had made in Nano Holdings LLC, USA.

He had also "failed" to disclose investments made by Chess Global Advisory, a company co-owned by him, which amounted to committing an offence under the Black Money Act, the department had said in its complaint in the special court in May last year.

On the issue, Karti's said the I-T department had alleged that a house property was not disclosed in the I-T returns of and his family members.

"The I-T department's complaint was challenged in the The High Court quashed the complaint as baseless and illegal," he said, adding that and others will appear in due course and contest the case.

(This story has not been edited by Business Standard staff and is auto-generated from a syndicated feed.)

First Published: Tue, April 16 2019. 19:36 IST